PENN Entertainment (NASDAQ:PENN) Releases Quarterly Earnings Results, Beats Estimates By $0.30 EPS

PENN Entertainment (NASDAQ:PENN) announced its quarterly earnings data on Thursday. The company reported $0.07 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.23) by $0.30, FiscalAI reports. The business had revenue of $1.81 billion during the quarter, compared to the consensus estimate of $1.76 billion. PENN Entertainment had a negative net margin of 13.24% and a negative return on equity of 4.59%. The company’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.44) EPS.

Here are the key takeaways from PENN Entertainment’s conference call:

• The U.S. sportsbook rebrand to theScore Bet produced positive adjusted EBITDA in December, and management expects the interactive segment to reach breakeven adjusted EBITDA in 2026 (a ~$268M year-over-year improvement) while cutting marketing spend by about $150M to focus on iCasino and Canada.
• Retail remains healthy with Q4 retail adjusted EBITDAR of $456.4M and guidance for 2026 retail net revenue of $5.7B–$5.85B and adjusted EBITDAR of $1.86B–$1.98B, supported by a $20M reduction in recurring maintenance CapEx and an outlook for >$3/share free cash flow and >1 turn of lease-adjusted deleveraging.
• Four growth projects (including Aurora and the Columbus hotel tower), continued momentum at Joliet and M Resort, and anticipated GLPI funding (≈$225M for Aurora) underpin a development plan targeting ~15%+ cash-on-cash returns, with 2026 total CapEx guided to $445M (project CapEx ~$225M).
• Near-term headwinds include weather that cut retail adjusted EBITDAR by about $7M in December (and an estimated $5M–$10M impact so far in Q1), local new supply pressure in Louisiana and Council Bluffs, and an expected ~2-week downtime when Aurora opens in 2Q that will weigh on quarterly cadence.
• Regulatory and legal uncertainty is a material risk — management flagged unresolved issues around prediction markets and recent state-level actions (e.g., Maine’s iGaming decision being legally challenged) and emphasized it will not take actions that could jeopardize land‑based gaming licenses.

PENN Entertainment Stock Performance

Shares of NASDAQ PENN traded up $2.10 during midday trading on Thursday, reaching $14.64. 14,631,929 shares of the company traded hands, compared to its average volume of 4,126,100. The company has a market cap of $1.95 billion, a price-to-earnings ratio of -2.31, a PEG ratio of 0.39 and a beta of 1.39. The stock has a 50-day moving average price of $13.76 and a 200 day moving average price of $15.95. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $22.13. The company has a debt-to-equity ratio of 3.65, a current ratio of 0.75 and a quick ratio of 0.75.

Institutional Trading of PENN Entertainment

A number of hedge funds and other institutional investors have recently made changes to their positions in PENN. Axxcess Wealth Management LLC boosted its holdings in shares of PENN Entertainment by 54.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 55,075 shares of the company’s stock valued at $812,000 after acquiring an additional 19,500 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its position in PENN Entertainment by 328.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 52,814 shares of the company’s stock worth $779,000 after purchasing an additional 40,493 shares during the period. XTX Topco Ltd lifted its position in PENN Entertainment by 59.6% in the fourth quarter. XTX Topco Ltd now owns 38,933 shares of the company’s stock worth $574,000 after purchasing an additional 14,534 shares during the period. Susquehanna Portfolio Strategies LLC boosted its stake in PENN Entertainment by 1,637.1% during the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 194,365 shares of the company’s stock valued at $2,867,000 after purchasing an additional 183,176 shares in the last quarter. Finally, Engineers Gate Manager LP increased its position in shares of PENN Entertainment by 1,255.7% during the 4th quarter. Engineers Gate Manager LP now owns 567,388 shares of the company’s stock valued at $8,369,000 after purchasing an additional 525,536 shares during the period. 91.69% of the stock is currently owned by institutional investors.

PENN Entertainment News Summary

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: Q4 results beat expectations — PENN reported $1.81B revenue (+8.2% YoY) and $0.07 adjusted EPS, topping consensus and narrowing losses, which drove investor optimism. PENN Entertainment, Inc. Reports Fourth Quarter Results
• Positive Sentiment: Interactive segment showing clear improvement — rebrand to theScore Bet (Dec 1) and iCasino strength produced positive adjusted EBITDA in December and record Interactive performance that management highlighted as a key driver. PENN (PENN) Q4 2025 Earnings Call Transcript
• Positive Sentiment: Management set explicit 2026 targets — aiming for ~20% Interactive segment EBITDAR growth and ~$3 per share free cash flow while advancing restructuring and cost optimization, giving investors a clearer path to profitability and cash conversion. Penn targets 20% interactive segment EBITDAR growth and $3 per share free cash flow in 2026
• Positive Sentiment: Market reacted to Interactive momentum and ESPN Bet exit — coverage notes and trading activity show the post-ESPN Bet operational improvement was a catalyst for the stock move. Penn Stock Pops As Interactive Posts Positive Results After ESPN Bet Exit
• Neutral Sentiment: Legal/policy uncertainty — CEO pushed for quick resolution of prediction market lawsuits (hopes for Supreme Court), which could materially affect future product opportunities but is timing/ outcome uncertain. PENN CEO Hopes Prediction Market Lawsuits Get to Supreme Court ASAP
• Negative Sentiment: Near-term headwinds remain — management cited weather and market challenges that pressured retail results, PENN still reports negative GAAP margins and carries high leverage, so execution risk and macro/hold variability could reverse gains. PENN Entertainment Inc (PENN) Q4 2025 Earnings Call Highlights

Analyst Upgrades and Downgrades

PENN has been the subject of several recent research reports. Wells Fargo & Company started coverage on PENN Entertainment in a report on Tuesday, November 18th. They set an “underweight” rating and a $15.00 target price for the company. Mizuho set a $19.00 price objective on PENN Entertainment in a research report on Monday, February 2nd. Stifel Nicolaus upgraded PENN Entertainment from a “hold” rating to a “buy” rating and upped their price objective for the stock from $19.00 to $21.00 in a research note on Friday, November 7th. Jefferies Financial Group reiterated a “hold” rating and issued a $17.00 target price on shares of PENN Entertainment in a research note on Wednesday, December 24th. Finally, Needham & Company LLC reissued a “hold” rating on shares of PENN Entertainment in a report on Friday, November 7th. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $19.67.

About PENN Entertainment

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.